Released 18 March 2021
The Department for Business, Energy, and Industrial Strategy (BEIS) has launched a consultation Restoring trust in audit and corporate governance to reform the UK’s audit, corporate reporting and corporate governance system.
The consultation sets out proposals to strengthen the UK’s framework for major companies and the way they are audited. The proposals set out how:
•companies should report on their governance and finances;
•reports should be audited;
•audit and the audit market should change;
•these should be overseen by a new regulator.
The objectives of these reforms are to:
•restore public trust in the way that the UK’s largest companies are run and scrutinised;
•ensure that the UK’s most significant corporate entities are governed responsibly;
•empower investors, creditors, workers, and other stakeholders by giving them access to reliable and meaningful information on a company’s performance;
•keep the UK’s legal frameworks for major businesses at the forefront of international best practice.
The consultation runs until 8 July 2021.
Further information can be found at https://www.gov.uk/government/publications/restoring-trust-in-audit-and-corporate-governance.
FRC comments on the consultation can be found at https://www.frc.org.uk/news/march-2021/frc-welcomes-proposals-to-strengthen-uk-corporate.